RECENT AMENDMENTS IN ‘INTEGRATED GOODS AND SERVICES TAX RULES, 2017
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 5-1-2019
Introduction
The 'Integrated Goods and Services Tax Rules, 2017' ('Rules' for short) was made by the Central Government and notified vide Notification No. 04/2017-Integrated Tax, dated 28.06.2017. The said Rules have been further amended vide Notification No. 12/2017-Integrated Tax, dated 15.11.2017 with effect from 15.11.2017.
Now the Central Government amended the said Rules in accordance with the decisions taken in the recent GST Council. The said amendment has been notified vide Notification No. 04/2018-Integrated tax, dated 31.12.2018. The said Rules came into effect from 01.01.2019.
The amendment inserted new rules from 4 to 9 after Rule No. 3. The said Rules deal with the following-
* Supply of services in relation to immovable property – Section 12(3) of IGST Act – New Rule No.4;
* Place of supply of services
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state agents,
any service provided by way of-
* grant of rights to use immovable property; or
* for carrying out or co-ordination of construction work; or
(b) lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a houseboat or any other vessel ; or
(c) accommodation in any immovable property for organizing any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c)
where such immovable property or boat or vessel is located in more than one State or Union territory, shall be taken as being in each of the respective States or Union territories.
In the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of th
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uch services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the area of the immovable property lying in each State or Union territory;
* in case of services provided by way of lodging accommodation by a house boat or any other vessel and services ancillary to such services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the time spent by the boat or vessel in each such State or Union territory, which shall be determined on the basis of a declaration made to the effect by the service provider.
Place of supply of services provided by way of event (Rule 5)
The supply of services attributable to different States or Union territories in the case of-
* services provided by way of organization of a cultural, artistic, sporting, scientific, educational or entertainment event , including supply of services in relation to a conference, fair exhi
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nstalled in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined in the following manner-
* The number of points in a circuit shall be determined in the following manner-
* in the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points;
* any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point;
* The supply of services shall be treated as made in each of the respective States or
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erritories, and the proportion of value attributable to each such State and Union territory in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, shall be determined in the following manner-
* in the case of services supplied on the same goods, by equally dividing the value of the service in each of the States and Union territories where the service is performed;
* in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in each of the States and Union territories, on which service is performed, as the ratio of the value of the service performed in each State or Union territory;
* in the case of services supplied to individuals, by applying the generally accepted accounting principles.
The proportion of value of services attributable to different States or Union territories in relat
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rovisions of rule 4, mutatis mutandis.
The proportion of value of services attributable to different States or Union territories in relation events (Rule 9)
The proportion of value attributable to different States or Union territories, in the case of-
* supply of services by way of admission to, or
* organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and
* of services ancillary to such admission or organization,
where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are provided in more than one State or Union territory, in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by applying the provisions
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